By FXEmpire.com
The natural gas markets had an extremely impressive week as they broke above the three dollar level to close at roughly $3.08 or so. This is significant, mainly because of the $3.10 level that we see as such massive resistance. If this level gives way, it looks like there is a massive air pocket all the way to the $3.50 level, and then above their the $4.00 level. This means that a daily close above the $3.10 level could lead to a massive surge higher.
It is because of this and the shape of the candlestick for the week that we are starting to think about buying this market. This is in a super long-term trend following type of trade, rather an opportunity pick up a dollar or so in the natural gas market. On the whole, we still think the bearish momentum will pick back up, but with the recent price action we understand that we may have to wait before shorting again. On the other hand, if we broke the lows of this past week we would think of this as a very bearish signal.
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Originally posted here
